5. Adam borrows an amount at an annual interest rate of 7%. He repays all interest and principal in a lump sum at the end of ten years from now. Adam uses the amount borrowed to purchase a 5-year bond with a par value of 1,000 with coupons at a nominal rate of 10% payable semiannually, with the rst coupon paid at the end of 6-month period from now. The bond is redeemed at par and Adams yield rate for the bond is 9% convertible semiannually. As Adam receives each coupon payment, he immediately puts the money into an account earning nominal rate of 5.8% convertible semiannually. At the end of ve years (from now), immediately after Adam receives the nal coupon payment, Adam deposits the accumulated value of the coupons and the redemption amount of the bond into a savings account earning an annual interest rate of 6%. At the end of each year from year 6 through 10, Adam deposits an additional amount of 50 into this savings account.

Find Adams accumulated value at the end of ten years after the loan is repaid.